TaxTMI 
TaxTMI 
2018 (6) TMI 185
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....lavoring Essences. They registered with the Central Excise Department vide CER No. AACCM1243JXM001. They are availing credit of duty paid on inputs and input services under the provisions of CENVAT Credit Rules, 2004 and utilizing the same for payment of duty on final products. Their accounts were audited by the Central Excise staff during January, 2015, covering the period from April, 2013 to September, 2014 and observed that the appellants has - a) Irregularly availed CENVAT credit of Rs. 28,75,157/- on the input services which were utilized exclusively in R & D unit located at Mumbai. b) Irregularly availed CENVAT credit of Rs. 9,393/- on ineligible input service. 2.1 On being pointed out by the audit, the appellant ....
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....der Rule 14 of CENVAT Credit Rules read with Section 11AA of Central Excise Act. d) Confirmed the demand of interest on the above amounts under Section 75 of Finance Act, 1994. e) Imposed penalty of Rs. 28,75,157/- under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act. Aggrieved by such an order, an appeal was preferred before the First Appellate Authority. The First Appellate Authority, after following due process of law, rejected the appeal on merits as well as on limitation. 3. Learned Consultant draws my attention to the facts of the case and also various records, submits that the premises situated at Mumbai are used for administration, sales and marketing and as also R&D win....
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....hat, the premises at Mumbai are used only for R&D wing activity. It is his submission that R& D activity in itself the CENVAT credit on services rendered to such premises cannot be availed by the appellant. There is nothing on record to show that the products which were researched were commercially produced in Hyderabad. It is his further submission that the appellant should have taken centralized registration or ISD registration further at Mumbai premises in order to avail the CENVAT credit of the services rendered. As regards the works contract services, it is his submission that it is very clear from the orders in the lower authorities, it is correctly denied post April, 2011 CENVAT credit availed on service tax paid on construction serv....
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....administration in order to start functioning at Mumbai. It would mean that the entire activity is for setting up of premises from where appellant was conducting activities as mentioned herein above. Post 01.04.2011 the definition of input services specifically excludes credit of tax paid on works contract services, if they are rendered from setting up factory. On this ground, the arguments put forth by the Learned Counsel, are devoid of merits, and needs to be rejected and I do so. The CENVAT credit availed on this amount is correctly denied by the lower authorities having done so. 7. As regards the service tax credit of other services availed, I find that these services are rendered by the service providers at the Mumbai premises which ....